How managed futures can help diversify client portfolios

clock • 3 min read

Increasing correlation between bonds and equities, rising interest rates, increased geopolitical risk and potentially overheating markets appear to have eroded many of the diversification benefits of the 60:40 balanced portfolio.

The traditional asset management portfolio, long considered a low risk, default option, may no longer be a match for today's markets. As the traditional portfolio framework looks increasingly vulnerable, uncorrelated strategies such as managed futures are now considered by many to help provide the necessary diversification to achieve long term investment goals. Among the strategies employed by managed futures managers, also known as CTAs (commodity trading advisors), trend following is by far the most commonly employed, a strategy which when included as an allocation in a diversified ...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Investment

Stories of the week: FCA slammed over name and shame plans; MPs to scrutinise use of AI in financial services

Stories of the week: FCA slammed over name and shame plans; MPs to scrutinise use of AI in financial services

The FCA, Saba, and AI: The biggest stories from the world of investment and asset management this week

clock 07 February 2025 • 1 min read
Friday Briefing: The AI bubble might be about to pop

Friday Briefing: The AI bubble might be about to pop

Nvidia took the biggest hit

Cristian Angeloni
clock 03 February 2025 • 3 min read
Stories of the week: Hedge funds go short against Saba holdings; Schroders adopts all four SDR labels

Stories of the week: Hedge funds go short against Saba holdings; Schroders adopts all four SDR labels

Hedge funds, Saba, and Hargreaves Lansdown: The biggest stories from the world of investment and asset management this week

clock 31 January 2025 • 1 min read
Trustpilot